Western Digital Corp WDC shares fell in Tuesday's after-hours session after the company reported mixed fiscal second-quarter results and issued weak guidance.
What Happened: Western Digital reported second-quarter revenue of $3.11 billion, which beat average analyst estimates of $2.99 billion, according to Benzinga Pro. The company reported a quarterly net loss of 42 cents per share, which may not compare to estimates for a loss of 12 cents per share.
Western Digital said its bottom-line results include $100 million of underutilization related charges in hard disk drives (HDD).
"The Western Digital team delivered revenue at the high end of our guidance range, despite a challenging flash price environment and continued cloud inventory digestion. We continue to take action to reset the business in response to the post-pandemic environment by optimizing our cost structure and strengthening our liquidity," said David Goeckeler, CEO of Western Digital.
Western Digital anticipates a fiscal third-quarter adjusted net loss of $1.40 to $1.70 per share. The company sees third-quarter revenue in a range of $2.6 billion to $2.8 billion versus estimates of $3.01 billion.
Western Digital's outlook includes underutilization charges in flash and HDD totaling $250 million, with flash driven by a 30% reduction in wafer starts beginning in January.
See Also: Snap Stock Sinks On Q4 Earnings, Company Holds Back Guidance: What's Going On?
WDC Price Action: Western Digital shares are down 4.60% at $41.93 at the time of writing, according to Benzinga Pro.
Photo: courtesy of Western Digital.
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